AuKing Mining (ASX: AKN) Forms Strategic Joint Venture for Koongie Park with Cobalt Blue

Key Highlights:

• New Joint Venture with Cobalt Blue (ASX: COB): COB has the right to earn up to 75% of Koongie Park by investing $2M over three years.
• Strong Metallurgical Expertise: COB’s involvement brings advanced metallurgical knowledge to enhance the project’s development.
• Immediate Benefits for AuKing: AKN receives $200K in COB shares, ensuring Koongie Park remains in good standing while focusing on its gold and uranium projects.
• Significant Retained Interest: Even after full earn-in, AuKing will maintain a minimum 25% stake in the project.
• Koongie Park’s Potential Confirmed: The 2023 Scoping Study outlined an 11-year mine life with an estimated $177M pre-tax NPV and 39.7% IRR.

A Transformational Joint Venture for Koongie Park

AuKing Mining Limited (ASX: AKN) has announced a major partnership with Cobalt Blue Holdings (ASX: COB) for its Koongie Park copper-zinc project in Western Australia. The agreement enables COB to earn up to a 75% interest in the project by investing $2 million over the next three years.

This joint venture is a strategic win for both companies. COB brings significant metallurgical expertise, which is crucial for advancing Koongie Park towards feasibility studies. At the same time, AuKing secures long-term project funding while shifting its focus to its Cloncurry gold and Mkuju uranium projects.

AuKing’s Managing Director, Paul Williams, emphasized the importance of this partnership:

            “This is the right time to bring Cobalt Blue into Koongie Park. Their metallurgical expertise could unlock the full value of this polymetallic deposit. Meanwhile, we can focus on advancing our gold and uranium assets while maintaining a strong stake in Koongie Park’s future success.”

Koongie Park: A Project with Strong Fundamentals

AuKing has spent the past three years significantly advancing Koongie Park through extensive drilling, resource estimation, and metallurgical test work. Key project highlights include:

Drilling Results (Onedin & Sandiego deposits):

• 124m @ 1.03% Cu, 1.08% Zn, 1.59% Pb, 50g/t Ag (AOWB003)
• 106m @ 0.53% Cu, 2.69% Zn, 10g/t Ag (AORD001)
• 16m @ 10.2% Cu, 1.03% Zn, 316g/t Ag (AORD004)

JORC 2012 Resource Estimate (Total: 21.1Mt):

• Sandiego: 4.1Mt @ 1.40% Cu, 4.3% Zn, 0.2g/t Au, 25g/t Ag, 0.4% Pb
• Onedin: 4.8Mt @ 0.70% Cu, 3.2% Zn, 0.1g/t Au, 38g/t Ag, 1.10% Pb
• Emull: 12.2Mt @ 0.27% Cu, 0.38% Zn, 4.9g/t Ag, 0.09% Pb

Scoping Study (2023) Key Takeaways:

• 11-year mine life, targeting multiple deposits.
• $134M CAPEX with a 2.45-year payback period.
• Pre-tax NPV (8%) of $177M, based on a copper price of US$3.90/lb.
• LOM EBITDA of $443.8M, with annual cash flow averaging $40.3M.

These findings confirm Koongie Park’s economic potential, with further metallurgical refinements expected to enhance project viability.

Joint Venture Terms: How COB Can Earn Its Stake

The earn-in agreement is structured into two stages:

Stage 1: COB Earns 51% Interest

• COB issues $200K in shares to AuKing.
• COB must spend $500K on exploration by June 2027 to retain its 51% stake.
• If COB fails to meet this requirement, AuKing can buy back 2% (returning to 51%) by reimbursing 2% of COB’s expenditure.

Stage 2: COB Increases to 75% Interest

• COB can earn an additional 24% by spending another $1.5M by June 2028.
• If COB fails, AuKing can buy back 2%, keeping its majority stake at 51%.
• If AuKing’s stake dilutes below 10%, it will convert to a 1% Net Smelter Royalty (NSR).

This agreement allows AuKing to retain a meaningful interest in Koongie Park while minimizing its financial exposure.

Why This Deal is a Win-Win for Both Companies

This partnership allows Cobalt Blue to apply its metallurgical expertise to unlock Koongie Park’s full economic potential, while AuKing can:

✅ Focus on advancing its gold and uranium projects.

✅ Ensure Koongie Park remains in good standing.

✅ Retain a 25% (or more) stake in a growing copper-zinc asset.

With metals demand surging, particularly for copper and zinc, Koongie Park is well-positioned to benefit from rising market trends.

What’s Next?

With COB now involved, the next steps for Koongie Park include:

🔹 Further resource definition drilling to expand known deposits.

🔹 Advanced metallurgical testing to optimize processing methods.

🔹 Feasibility studies to move the project towards development.

Final Thoughts: A Strategic Move for AuKing

This joint venture deal strengthens AuKing’s position by securing Koongie Park’s development pathway while allowing the company to focus on its gold and uranium projects.

With copper, zinc, and lead prices on an upward trend, Koongie Park’s future looks increasingly promising. Investors looking for long-term exposure to critical minerals should keep a close watch on AKN and its evolving portfolio.